The White Law Group Files Arbitration Lawsuit Against Cabot Lodge Securities for High-Risk Investment Losses
The White Law Group, a national FINRA law firm focused on securities fraud and investor protection, has filed an FINRA lawsuit with FINRA Dispute Resolution against Cabot Lodge Securities on behalf of four Pennsylvania residents. The claim alleges significant financial losses due to high-risk alternative investments.
The complaint accuses Cabot Lodge Securities of common law fraud, breach of fiduciary duty, negligence, and negligent supervision related to the recommendation of the following non-traded Real Estate Investment Trusts (REITs):
First Capital
Cole Capital
Hospitality Investors Trust
The claim seeks compensation for the clients’ losses, ranging from $100,000 and $300,000.
High Risk Non-Traded REITs
The allegations center on the firm’s failure to adequately supervise the recommendations of these risky investments. Cabot Lodge Securities is accused of not conducting sufficient due diligence to ensure that the non-traded REITs were appropriate for the investors, thus violating their fiduciary responsibilities.
“As fiduciaries, brokerage firms are obligated to fully inform their clients about the risks of an investment and to perform thorough due diligence to confirm its suitability for the investor,” explained D. Daxton White, managing partner of The White Law Group. “Cabot Lodge Securities seemingly neglected these critical duties, leading to significant losses for our clients.”
FINRA Lawsuits
FINRA, the Financial Industry Regulatory Authority, offers an arbitration platform for investors seeking to resolve disputes with their brokerage firms or financial advisors. This process provides a viable alternative to court litigation, enabling investors to pursue recovery of their losses.
“Investors are often unaware that they have avenues for recourse when they suffer losses due to inappropriate investment recommendations,” White added. “Our firm is dedicated to helping them navigate these options to seek justice and financial recovery.”
In cases where brokerage firms fail to properly supervise their representatives, they can be held accountable for any investment losses suffered by the investors. The White Law Group is committed to holding these firms responsible for their actions through FINRA arbitration.
The White Law Group – National Securities Attorneys
The White Law Group, with offices in Chicago, Illinois, and Seattle, Washington, focuses on securities fraud, arbitration, and investor protection across the nation.
